Nicholas Stern reflects on the impact of the Stern Review

Two decades after the publication of the landmark Stern Review, economist Sir Nicholas Stern reflects on the evolution of climate change economics. The original review, commissioned by former UK Chancellor Gordon Brown, reframed climate change as a major economic issue rather than strictly an environmental one, arguing that the cost of inaction would far exceed the cost of mitigation.

Stern notes that while the review was once criticized as alarmist, recent scientific data suggests the risks were actually understated. He points out that temperature increases have exceeded previous projections. However, he also highlights that the transition to low-carbon technologies has progressed faster than anticipated, with renewables becoming more cost-effective than fossil fuels and the rise of electric vehicles signaling a shift away from internal combustion engines.